Decision on landfill looming

Privatization remains an option

Published: Wednesday, April 24, 2013 at 4:52 p.m.

Last Modified: Wednesday, April 24, 2013 at 4:52 p.m.

Privatization of the county landfill may not be the cheapest route, according to new figures released this week.

Davidson County commissioners, who prompted staff to evaluate program costs in 2011, have yet to decide whether county staff or a private company will operate its landfill and other waste programs.

While a hired consultant said the county could see a potential savings of up to 17 percent under private landfill management earlier this year, updated figures show that continued county operation could cost less.

Much of the county’s updated figures reflect decreases in personnel costs, starting in the next fiscal year.

It would cost the county about $10.6 million to operate the landfill program through Fiscal Year 2015-16, which is about $1 million less than two companies that responded to a request for qualifications to operate the program, according to the figures.

After Fiscal Year 2015-16, when staff anticipates one of two landfill areas will reach capacity, it will cost the county close to $24 million to operate the program through Fiscal Year 2022-23, which is an average of about $5 million less than the proposals submitted by the private companies.

The new numbers were derived from a comprehensive re-evaluation performed by Davidson County Integrated Solid Waste Management in recent months. The figures are more reflective of the department's budget request for the next fiscal year, said Mark Cathey, a senior project manager with McGill Associates who is performing the cost analysis.

While the new figures show that privatization may not the cheapest option, commissioners voted 5-2 Tuesday to continue negotiations with both private companies to obtain their lowest price.

Cathey, who recommended commissioners finish the negotiation process, said the companies have yet to put their "best foot forward."

"We've taken the county's information based off of some re-evaluation of the costs and some improvements to the program and have inserted that information," Cathey said. "We have not gone to the contractors and said, 'Sharpen your pencil and give us your best number.'"

Cathey will have 90 days to sit down with both companies, Santek Waste Services and Waste Industries, and obtain final pricing, according to the board's recommendation.

Board chairman Fred McClure said it was wise the county at least finish the process.

"I'm not saying we should do it, but I think there's enough information here that we should at least pursue it to its end," McClure said. "We've come this far since 2011, and we have one more step to go. I think if we could do that, we could make a final decision."

Commissioners Billy Joe Kepley and Sam Watford dissented.

"Anything that says we need to move the landfill away from our use to privatization I would oppose," Kepley said. "As of now, Davidson County owns the landfill, we operate the landfill and manage the landfill, and the landfill is second best in the state.

"Look at what we have right now. We don't pay any taxes, we don't have to make a profit. We are our own people and control those people. If we have an employee that gets out of line at 10 a.m., we can clear his desk by 12 p.m."

Watford agreed.

"The original purpose of this exercise was to see if we could operate more efficiently," Watford said. "I can't see any advantage in going further in this process, even if it would be a little bit of savings. The advantages that Mr. Kepley was referring to would far outweigh any benefits a private company could provide."

In addition to the landfill, commissioners also asked McGill Associates to evaluate the costs of the county's sanitation division.

It would cost Davidson County about $11.9 million to operate the sanitation division for the next 10 years, which is about $6 million less than Santek's proposal and close to $1 million less than the Waste Industries proposal, according to the figures.

Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com.

<p>Privatization of the county landfill may not be the cheapest route, according to new figures released this week.</p><p>Davidson County commissioners, who prompted staff to evaluate program costs in 2011, have yet to decide whether county staff or a private company will operate its landfill and other waste programs.</p><p>While a hired consultant said the county could see a potential savings of up to 17 percent under private landfill management earlier this year, updated figures show that continued county operation could cost less.</p><p>Much of the county's updated figures reflect decreases in personnel costs, starting in the next fiscal year.</p><p>It would cost the county about $10.6 million to operate the landfill program through Fiscal Year 2015-16, which is about $1 million less than two companies that responded to a request for qualifications to operate the program, according to the figures.</p><p>After Fiscal Year 2015-16, when staff anticipates one of two landfill areas will reach capacity, it will cost the county close to $24 million to operate the program through Fiscal Year 2022-23, which is an average of about $5 million less than the proposals submitted by the private companies.</p><p>The new numbers were derived from a comprehensive re-evaluation performed by Davidson County Integrated Solid Waste Management in recent months. The figures are more reflective of the department's budget request for the next fiscal year, said Mark Cathey, a senior project manager with McGill Associates who is performing the cost analysis.</p><p>While the new figures show that privatization may not the cheapest option, commissioners voted 5-2 Tuesday to continue negotiations with both private companies to obtain their lowest price.</p><p>Cathey, who recommended commissioners finish the negotiation process, said the companies have yet to put their "best foot forward."</p><p>"We've taken the county's information based off of some re-evaluation of the costs and some improvements to the program and have inserted that information," Cathey said. "We have not gone to the contractors and said, 'Sharpen your pencil and give us your best number.'"</p><p>Cathey will have 90 days to sit down with both companies, Santek Waste Services and Waste Industries, and obtain final pricing, according to the board's recommendation.</p><p>Board chairman Fred McClure said it was wise the county at least finish the process.</p><p>"I'm not saying we should do it, but I think there's enough information here that we should at least pursue it to its end," McClure said. "We've come this far since 2011, and we have one more step to go. I think if we could do that, we could make a final decision."</p><p>Commissioners Billy Joe Kepley and Sam Watford dissented.</p><p>"Anything that says we need to move the landfill away from our use to privatization I would oppose," Kepley said. "As of now, Davidson County owns the landfill, we operate the landfill and manage the landfill, and the landfill is second best in the state.</p><p>"Look at what we have right now. We don't pay any taxes, we don't have to make a profit. We are our own people and control those people. If we have an employee that gets out of line at 10 a.m., we can clear his desk by 12 p.m."</p><p>Watford agreed.</p><p>"The original purpose of this exercise was to see if we could operate more efficiently," Watford said. "I can't see any advantage in going further in this process, even if it would be a little bit of savings. The advantages that Mr. Kepley was referring to would far outweigh any benefits a private company could provide."</p><p>In addition to the landfill, commissioners also asked McGill Associates to evaluate the costs of the county's sanitation division.</p><p>It would cost Davidson County about $11.9 million to operate the sanitation division for the next 10 years, which is about $6 million less than Santek's proposal and close to $1 million less than the Waste Industries proposal, according to the figures.</p><p>Nash Dunn can be reached at 249-3981, ext. 227, or at nash.dunn@the-dispatch.com.</p>